TD to pay $28 million for sharing inaccurate U.S. consumer data in latest black eye for bank
Toronto-Dominion Bank will pay almost US$28 million in fines and restitution after the Consumer Financial Protection Bureau said the lender shared inaccurate information about tens of thousands of U.S. customers with consumer reporting companies.
A CFPB investigation found the information included personal bankruptcies and credit card delinquencies as well as bank accounts that “TD Bank knew or suspected were fraudulently opened,” the agency said in a statement Wednesday. “After the bank realized it was botching its reporting to consumer reporting companies, it took far too long to correct many of its errors.”
The information TD shared was for a range of consumer reports, including job and tenant screening and other background reports, the types of data that can affect consumers’ employment prospects, access to credit and ability to secure housing, according to the CFPB.
The bank agreed in a consent order filed Wednesday to pay US$7.76 million to the tens of thousands of consumers affected by the fraudulent or inaccurate reports and a US$20 million civil penalty. It also agreed to a range of reporting and compliance measures.
“Long before this settlement, TD self-identified these matters and voluntarily and proactively implemented enhancements to our furnishing and dispute handling practices,” Miranda Garrison, a spokesperson for the bank, said by email. “TD co-operated fully to resolve this matter and is committed to continuing to deliver on its responsibilities to its customers.”
The fine is the latest black eye for the Canadian bank, which has a large U.S. operation with more than 10 million customers. It’s already facing allegations it failed to catch money laundering and other financial crimes at numerous U.S.
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